Interactive Brokers review: A great platform for active investors
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Updated: December 12, 2023
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We adhere to strict standards of editorial integrity to help you make decisions with confidence. Please be aware that some (or all) products and services linked in this article are from our sponsors.
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Interactive Brokers overview
Who is Interactive Brokers for?
Interactive Brokers started as a trading platform designed for investors of all skill levels, from day traders to DIY investors. Today, there are a variety of trading platforms and tools to choose from, so investors of any skill level will find something to suit their needs.
Their IBKR Pro plan offers robust trading tools and the IB SmartRouting tool, which helps investors time their orders to get the best price. IBKR Pro is also best for margin traders since IBKR Pro users have access to the lowest margin rates.
Interactive Brokers also offers a plan that's well-suited to more casual investors. With IBKR Lite, investors get unlimited commission-free trading for U.S. stocks and ETFs. However, this plan has higher margin rates, so this account plan is best for investors who don't plan to trade on margin.
Both plans provide powerful tools designed for experienced traders. So it may be more intimidating than other popular brokerage firms for beginner investors. As a result, new inventors or those just learning the ropes may find that this isn't the right broker for them.
Read more: Best investment strategies (and how to choose the right one for you)
Interactive Brokers pros and cons
Pros
- Commission-free trading for IBKR Lite users
- Low margin rates
- Robust trading tools
- Variety of investment choices, including stocks, bonds, funds, futures, options and cryptocurrencies
- International trading features
Cons
- Complicated fee structure
- Platform isn't user-friendly, especially for beginners
- Limited account types
Features of Interactive Brokers
Many investors name Interactive Brokers as among their favorites. And it's easy to see why. Below we walk you through some of the features that make Interactive Brokers great.
Investment selection
One of the biggest selling points of Interactive Brokers is the wide variety of investment choices the broker offers. First, the platform offers the investments you'd expect to find with any major broker, including stocks, bonds, exchange-traded funds (ETFs) and mutual funds.
In addition to those basic investments, Interactive Brokers also allows for more advanced trading strategies such as options, futures, forex and even hedge funds. Users also have access to international trading, including 150 exchanges in 33 countries worldwide.
Finally, cryptocurrency investors won't have to find a separate platform. You can buy and sell cryptocurrencies and cryptocurrency futures at lower fees than at many of the most popular crypto exchanges. Through Paxos or Zero Hash, IBKR clients can trade cryptocurrency alongside other asset classes available on the Interactive Brokers platform, which creates a nice unified customer experience.
Trading platforms
One of the major selling points of Interactive Brokers is the trading platforms they offer.
- Client Portal: From the Interactive Brokers web application, you can place trades, check quotes, see your account balance and performance, and more.
- Trader Workstation: This is Interactive Brokers' flagship desktop platform designed for active traders, thanks to the available technical research and analysis tools.
- IBKR Mobile: All Interactive Brokers users can trade and monitor their investors directly from their iOS or Android device.
- IBKR GlobalTrader: This platform allows users to trade global stocks, funds and cryptocurrencies from their mobile device.
- IMPACT: Using this platform, users can find ESG investments and learn which companies and funds share their values.
- IBKR APIs: The Interactive Brokers trading APIs allow users to build custom trading applications, access investments across the globe and use the IB SmartRouting tool.
Pricing plans
It's worth mentioning the various Interactive Brokers pricing plans because it's something that makes this broker great for so many investors. Interactive Brokers was designed for DIY investors and day traders who want robust trading tools. And they can still get that with IBKR Pro. But now casual investors can also enjoy the platform thanks to the IBKR Lite pricing plan.
Commission and rates
Interactive Brokers is well known for its low trading fees. First, IBKR Lite users get unlimited commission-free trading on all stocks and ETFs listed on U.S. exchanges. And IBKR Pro users will pay just $0.005 (or less) per share on their trades, with a minimum commission of $1 (or less).
Interactive Brokers is also well known for its low margin rates. It's lower than rates at many of the other most popular margin-trading platforms. Margin rates decrease as the size of the margin loan increases. However, IBKR Lite users will pay a slightly higher rate.
Educational tools and resources
The IBKR Campus was redesigned in early 2023, and it is a robust educational platform that's free to use for clients and non-clients. Resources include latest investing and economic news, webinars, podcasts, as well as financial courses on everything from stocks and bonds to taxes.
But newbie investors may find it too advanced and overwhelming. If you're just getting started, you may prefer another broker that tailors to investors who are still learning the ropes.
Drawbacks of Interactive Brokers
We've talked about some of the biggest selling points of Interactive Brokers, but it's also important to discuss the features that aren't so great. Below we talk about a few of the major drawbacks of the platform.
User interface
There's no denying that Interactive Brokers offers a powerful trading platform. But it isn't exactly a user-friendly one, especially for beginner investors. It can be challenging to find the information and tools you need on the website. And even once you find them, you may not fully understand them unless you're an experienced investor.
For that reason, investors may prefer to start their investing journeys on a more straightforward platform and then pivot to Interactive Brokers when they're well-versed in investment tools.
Account types
Compared with other popular brokerage firms, Interactive Brokers falls short in the variety of account types it offers. The platform provides basic individual and joint taxable brokerage accounts. You can also choose between a few different individual retirement accounts (IRAs), including traditional, Roth and SEP. Finally, Interactive Brokers offers both UGMA and UTMA custodial accounts.
However, you may notice that there are some account types missing from this list. For example, Interactive Brokers doesn't offer Solo 401(k)s, even though they're a popular retirement savings tool for self-employed individuals. You also won't have access to a SIMPLE IRA, banking accounts and other popular investment accounts.
Interactive Brokers pricing and fees
We've already talked a bit about the pricing and fees on Interactive Brokers, but we dive in a bit further in this section. For U.S. stocks and ETFs, Interactive Brokers offers commission-free trading for IBKR Lite users and commission fees of $0.005 (or less) per share — with a minimum of $1 (or less) — for IBKR Pro users. Interactive Brokers also offers an industry-leading list of 19,000+ no-transaction-fee (NFT) mutual funds.
For options contracts, IBKR Lite users will pay $0.65 per contract with a minimum of $1, while IBKR Pro users will pay rates ranging from $0.15 to $0.65 per contract, depending on the monthly volume, also with a minimum of $1.
Finally, Interactive Brokers charges all users the same fees for cryptocurrencies, regardless of account tier. For a monthly trade value below $100,000, you pay 0.18% per trade. For a monthly trade value up to $1 million, you pay 0.15% per trade. Finally, for a monthly trade value of more than $1 million, you pay just 0.12% per trade. All trades have a minimum fee of $1.75.
Read more: Investment fees matter
Interactive Brokers customer service
Interactive Brokers makes it easy to get help when you need it. You can request customer service via email, phone or live chat. Live chat support is available 24 hours a day, Monday through Friday, with limited support hours on Sundays. Phone support is available Monday through Friday from 8 a.m. to 8 p.m., Eastern Time, and Sundays from 1 p.m. to 7 p.m. U.S. users can call the following numbers for phone support:
- 877-442-2757 (Toll-Free)
- 312-542-6901 (Direct Dial)
It's worth noting that Interactive Brokers is an entirely online company. As a result, there are no physical branches or offices where you can speak to a customer service representative.
Interactive Brokers also offers Ibot, an AI-powered resource that can provide quick access to information, account data, trading tools and help from Client Services.
Alternatives to Interactive Brokers
Not sure that Interactive Brokers is the right for you? Here are a few similar brokers that may be worth exploring.
| Highlights | Ally Invest | E*TRADE | Robinhood |
|---|---|---|---|
| Rating | 4.5/5 | 4.8/5 | 4.3/5 |
| Min. Investment | $0 | $0 | $0 |
| Stock Trades | $0/trade | $0/trade | $0/trade |
| Options Trades | $0.50/contract | $0.65/contract | $0 |
| Crypto Trades | ❌ | ❌ | ✔️ |
| Mutual Funds | ✔️ | ✔️ | ❌ |
| Virtual Trading | ❌ | ✔️ | ✔️ |
| Learn more | Open account | Open account | Open account |
| Read reviews | Ally Invest review | E*TRADE review | Robinhood review |
Want even more options? Check out our full list of the best online stock brokers.
Interactive Brokers summary
Interactive Brokers is one of the most popular brokerage firms for active traders. And it's easy to see why. The company offers low trading fees and robust trading tools — major assets to day traders and other DIY investors. And thanks to the various account tiers, casual investors can also enjoy the platform with an IBKR Lite plan.
However, the Interactive Brokers website can be a bit cumbersome to navigate. Thus, it may not be the first choice for beginner investors or those who need a bit more assistance.
